Govt allows India editions of foreign news mags with 26% FDI

New Delhi, Sep 18 (PTI) In a major decision that will
inject new vigour into print media, the Government
Thursday allowed India editions of foreign magazines with news
and current affairs content with 26 percent FDI.

With this decision, foreign magazines can come with
India editions with local as well as global contents at
cheaper prices.

As of now, foreign publications are allowed to take out
only facsimile editions. For example, US's Time, and UK's
Economist have a facsimile edition which come at high price.

Earlier, only 26 percent FDI was allowed in Indian
print media while foreign magazines were allowed through
facsimile edition.

"The Cabinet today gave its approval to review the
'Print Media Policy' by allowing of Indian editions of foreign
magazines publishing news and comments-- periodicals falling
under the news and current affairs category with 26 percent
foreign investment," Information & Broadcasting Minister Priya
Ranjan Dasmunishi said Thursday.

The Indian publisher would have to invest 74 percent of
the equity owning the venture.

"The decision will enable Indian readers to access the
foreign magazines at cheaper rates compared to the same
publications imported at much higher rates. The Indian reader
would be benefited immensely as he/she would be able to keep
abreast with the latest events and happenings on the global
scale," he said.

The permission is subject to the condition that at least
3/4th of the Directors on the Board of the applicant Indian
Company and all key executives and editorial staff being
resident Indians.

Dasmunshi said while the decision allows the Indian
publisher to have content 100 percent identical to the
foreign magazine concerned, local content can also be added.

The Indian publisher can insert local advertisements as
well.

Permission would be granted for publication of only
such magazines which are being published in the country of
their origin and they should have been publishing continuously
for a period of at least five years. They should have a
circulation of at least 10,000 paid copies for the last
financial year in the country of its origin.

The broad parameters for granting such permission include
registration Indian companies under the Indian Companies Act,
1956. Indian companies will also be allowed to enter into
financial arrangements like royalty payment arrangements with
the owners of the foreign magazines.

The title of the magazine should be get verified and
subsequently registered by the Indian company from the
Registrar of Newspapers for India.